Question

Using the Newton-Raphson algorithm, the DeBauch family takes out a mortgage of $100,050, to be repaid in 240
monthly installments of $900. What is the monthly interest rate?

Answer 1

Newton Raphson is used for root finding

Answer 2

When a loan of P dollars is paid back with N equal periodic payments of R dollars at interest rate i per period, the equation relating P, N, R and i is becomes

Answer 3

here is the formula http://www.vertex42.com/ExcelArticles/amortization-calculation.html

Answer 4

A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods